Local News

Fort Morgan Council asks MEAN about waste-to-energy

Capacity reliability questions loom for electric provider

ByJENNI GRUBBS Times Staff Writer

Posted:
04/24/2013 04:23:09 PM MDT

When two Municipal Energy Agency of Nebraska officials presented to the Fort Morgan City Council April 16 about electric rate increases, they also addressed the council's concerns and questions about the nonprofit partnering in a possible waste-to-energy plant.

Creative Energy Solutions wants to build a waste-to-energy plant in or near Fort Morgan and sell generated power to MEAN, which could then be resold to Fort Morgan.

Pick had previously told the council that he expected an end to new coal-fired power plants being built, and Bryan said he agreed with this assessment.

"Talking about the local generation facilities that are about done, it sounds like an alternative energy source like we have staring at us here has some benefit to you guys, too," Bryan said, asking if that was a correct assessment.

"I believe that is a correct statement," Pick said, but added a big caveat.

"One thing that we have concern about the alternative source is we don't have any history with that source," Pick said. "We are very conscientious. When we decide to move forward with an asset generator, we like to have a tried and true asset that we can rely on. And that's a big concern of ours as we move forward in this. But we are still evaluating it."

He said that MEAN's power supply group would be looking at the CES possibility more at a meeting in May.

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Bryan said he had not considered how MEAN getting power from the waste-to-energy plant would affect all of the MEAN members outside of Fort Morgan.

"We looked at that as being huge for our community and our county, and even surrounding counties," he said. "I never thought it might potentially affect every one of your customers in a positive way."

Mayor Terry McAlister also advocated for MEAN to partner with CES.

"As far as I remember, I don't remember MEAN being out anything . . . it was a no-brainer for a company to be able to buy energy without having to spend money building a facility or to finance a facility.

"If in fact this plant was running and then fell on its nose for some reason, you still aren't out," McAlister said.

Pick disagreed with that statement, though.

"There is a bit of risk," he said. "We run a really tight ship on capacity."

He explained that MEAN has to show proof of having the right capacity for its members' needs, which means buying enough beyond generation ability to cover those needs.

Any extra unneeded purchased capacity or shortfalls in capacity meant either higher costs for members or running afoul of government requirements, he said.

"What I want to reiterate is that if it was a tried and true unit that I could rely on, then I could count it as capacity and do the documentation and feel comfortable about submitting it," Pick said.

He pointed out that there were "significant" fines if there are gaps in documented capacity and reality.

The mayor said he had not heard this perspective before, and that it had sounded all positive from MEAN in previous discussions.

"I think if you had four or five of these get started across in your zone, like say in Nebraska north from us or Wyoming, people who are your customers in your areas, I think it would beneficial to you guys to buy electricity cheaper than what you're probably buying it from a coal plant or somewhere else."

Pick acknowledged that what the mayor was saying made sense.

"I agree. The dollars line up great," he said. "I think the deal, when I sit back and look at the capacity and energy cost, I think that's a great deal. But when we were sitting around that table, I had the feeling that there was a plant in Virginia or Kentucky that was already running and that there was history being produced there, and we would go there."

He said he later found out that was not the case, and that such waste-to-energy plants are still in planning phases.

"That's our hesitation on that whole thing," Pick said. "I wish there was something out that there was tried and true."

The mayor asked if there were any similar plants running.

Wells said that was the case, but possibly in Europe, rather than in the United States.

He told the council that the city's plan was to bring this concept in front of MEAN's power supply committee and explain the options and advantages.

Wells said he wanted to hear from MEAN members more about what they wanted to do.

"It's ultimately a decision of the members," Wells said. "The members make the decisions moving forward, and that's the direction they go."

The mayor pointed out another potential benefit to the waste-to-energy plant: dealing with overfilled landfills.

"Aside from you guys, on the environment part, who knows what we're going to have to do with landfills," McAlister said.

He said that while that may not be MEAN's priority, it was something that affected MEAN's members.

"It benefits from that side of it, as well as from the electrical side of it," he said. "Gosh, I have a hard time seeing a black cloud. I guess that's because I want it to be a white cloud."

Bryan thanked Pick for sharing his side of the issue.

"This thing is just so exciting to our county, and we want it go," he said. "But I appreciate your candor."

Councilwoman Lisa Northrup said she was glad to see that MEAN was working with city staff on this possibility.

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